The basic rate of tax was cut in 2008. This meant charities receive 2% less Gift Aid.

To help charities adjust to the tax rate reduction, the HMRC paid them extra tax relief until 5 April 2011 - this was called ‘transitional relief’.

For every £1 donated the charity received £1.28 when you added Gift Aid. From 6 April 2011 this went down to £1.25 when transitional relief stopped.